MTN Bows to Pressure, Agrees to $100m Licence Deal

Telecom giants, MTN Uganda have at last agreed to government terms to have their operator license renewed.

For nearly two years, the telecommunications company has been embroiled in a fight with government over a $100 million (Shs 375 billion) bill in license fees.

With the government unwilling to compromise on its position, MTN agreed to pay and have its license renewed for a period of 12 years commencing on July 1, 2020.

MTN joined the Ugandan market in 1998 after securing a 10-year operator license which expired on October 21, 2018. At the time, the telecom company had agreed with the regulator body, Uganda Communication Commission (UCC) to pay $50 million before President Yoweri Museveni raised objections and ordered UCC to give the company a bill of $100 million.

Museveni also insisted that MTN Uganda floats shares on the Uganda Security Exchange to would allow Ugandans to buy shares in the telecom.

In its statement, MTN Uganda admitted the license debacle noting that although their license had expired, it was variously extended to accommodate the conclusion of renewal negotiations which have been ongoing for close to 2years.

“MTN Uganda is now pleased to announce the conclusion of negotiations for the renewal of its Second National Operator license which expired in October 2018. MTN Uganda provides telecommunications services under a Second National Operator License for the operation of a telecommunications system issued on 15 April 1998 for a period of twenty years,” read in part the statement.


Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.